Introduction
Compelling evidence over the years illustrates the importance of focusing on total rewards to interest, engage, and retain employees. The program will not only concentrate on the salary and benefits but also other needs. Maslow's hierarchy of needs theory describes the needs of employees that should to be included in the total reward system. These needs are physiological, safety, social, esteem, and self-actualization. Frederick Hertzberg carried out a study in the 1950s and identified sixteen factors that influence job attitudes; ten were hygiene factors while six were motivators. Among the motivators were achievements, growth, responsibility, advancement, recognition, and type of work. The total reward system has to include all the motivators. Geico offers various benefits to the employees ranging from health and well-being, education and training, finance and retirement, and family and leave. The reward system in Geico motivates the employees, but improvements can be made to achieve the fundamental benefits of a total reward program, as discussed below.
Geico Total Rewards Program That Align With The Five Top Advantages Of A Total Rewards Program
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The total reward system has several advantages. The total rewards system mixes transactional and relational rewards, allowing flexibility to meet the workers' inspirational and psychological requirements. The system supports an improved recruitment and retention process. Workers are encouraged to use their skills and talents, creating a positive work experience that promotes dedication to a company. The total reward system leads to a lower cost of turnover and labor costs. Retention of the employees reduces the cost of recruitment and retention. Loss of employees’ leads to loss of customers and sales and leaves the remaining workers distracted ( WorldatWork , 2007 ). The total reward system is associated with heightened visibility when the labor market is tight. The system allows a company to recognize employees' talent and create a reward system that supports employees’ development. The system supports enhanced profitability in a company as motivated employees are highly productive.
Several aspects of the Geico reward system align with the benefits of the total reward system. The education and training programs meet the advantages of improved recruitment and retention, reduced cost of turnover, heightened visibility, and enhanced profitability. Geico offers the benefits of tuition reimbursement, covering the cost of application, tuition fees, and charges related to the course an employee chooses and textbook costs. Tuition reimbursement is available to all the time-full associates who are willing to further their undergraduate education. Further education places the associates in a better position to complete Geico activities, improving the quality of the services to the employees ( Geico ). Geico offers the best training in the insurance industry, focusing on claims, auto damage, sales, and customer service. The licensing and continuing education courses are provided at no cost, motivating the associates to take part, enhancing their skills and expertise. This translates to higher profitability for Geico since all their activities are handled by trained associates who meet customer requirements and satisfaction.
Family and leave reward systems meet the advantage of reduced labor costs. Geico supports family-work balance by providing paid vacations, holidays, and leave to the associates. There are several packages in the paid vacation rewards, starting with an accrued ten days annual vacation, ten weeks of paid parental leave after the birth, four floating holidays, and added six paid holidays. Other services include Dependence Care, FSA and Adoption, and Fertility Assistance. Geico supports individuals interested in adopting with about 5000 dollars, fertility assistance such as in-vitro fertilization, and a minimum amount of 5000 dollars for Dependent Care. These rewards meet the family needs of the associates, enhancing their dedication to the insurance company. Geico has a very low turnover since the associates are satisfied and inspired to contribute to company growth.
The finance and retirement reward system at Geico meets the advantage of enhanced profitability and reduced labor cost. Geico offers profit sharing, Geico Federal Credit Union, and Traditional & Roth 401 (k) Plans ( Geico ). In profit-sharing, the associates have to meet the requirements of policy growth and underwriting performance. Thus, the program creates a competitive market for the associates, improving their output to share in the company profits. Geico offers convenient services such as on-site banking and ATMs, loans are available, and money insurance is allowed in the company. These incentives promote the dedication of the associates to the business, in turn reducing the rates of turnover.
Communication of the reward system at Geico will be done during the recruitment process. The associates will be aware of what they will be expected to do to get rewards ( Chrysakis et al., 2020 ). Any changes in the reward system will be communicated continuously ensure that associates informed of the modifications that will be taking place.
A Strategy For Ensuring That The Geico Plan Addresses All Of The Advantages
The Geico reward system meets the total reward advantages of increased productivity, lower labor cost/turnover, and improved retention. The company is still missing flexibility and heightened visibility. The Geico strategy can address all the benefits of the total reward system by blending the monetary and nonmonetary rewards to the associates.
Blending the two methods will enhance higher levels of flexibility. The strategy deals with evaluating Geico’s organizational culture, finding out what the company offers besides learning, development, and money. Some of the questions the firm should look into are: how are the interactions between the associates? What is it like to work for Geico? Which is the management and leadership strategy used in the business? How do the associates relate to the company's hallmarks, such as reputation, corporate social responsibility, and financial performance? How is the relationship between the associates and the managers? Does the company promote cultural diversity and inclusion? Addressing these questions will enable Geico to create an environment where the employees feel at ease, thus performing to the best of their abilities and meeting the benefits of the total reward system ( Kaut & Sharma, 2019) .
The Maslow hierarchy of needs reveals that employees' satisfaction and motivation do not rely on monetary rewards alone. The workers require a peaceful environment where they can put their abilities to work and feel part of the company. Geico should thus evaluate other needs such as psychological, safety, and esteem needs. Geico should implement a transformational leadership style, where the managers will concentrate not only on developing the company but also coaching, mentoring, and supporting the talents of the employees. Effective leadership will provide higher levels of visibility. Including the associates in the decision making process at Geico will inspire them as they feel part of the company ( Jiang et al., 2009 ). These strategies will achieve the benefits of heightened visibility.
Improvements to Geico’s Reward Program
Geico is missing an appraisal system that should be implemented in the total reward system. Some programs, such as profit-sharing, require the associates to meet certain requirements such as policy growth and underwriting performance. However, evaluating the performance of the employees will guide Geico by establishing how each person contributes to profitability in the business, their strengths and weaknesses, and the unique training programs to enhance their performance. Performance appraisal will guide the managers at Geico in assigning duties. The associates will be given tasks, depending on their skills and abilities. Performance assessment will motivate the employee since they will be ranked depending on their output, and each will improve since they want to enjoy the monetary rewards, holidays, and paid leave advantages offered by Geico.
Geico should focus on talent management. The associates have different abilities and skills and would perform best if these abilities are improved. During the recruitment process, the managers should identify the talents that each worker at Geico possesses. The information will guide the managers in creating training programs that focus on specific abilities in the company. However, it is essential to ascertain that these talents have a positive effect on the company. The company should also encourage the associates to utilize their talents on and off duty as they will benefit from it ( Hoole & Hotz, 2016) . During the execution of the total reward system, Geico should assemble the right team for the project. The human resource department should be in charge of ensuring that Geico meets the associates' needs and creating a culture of inclusion where associates feel accommodated in the company activities.
Conclusion
The performance of the workers shows their satisfaction levels in a company. It also reveals the participation of the organization in meeting the needs of the employees. A total reward system guides companies in implementing strategies to meet the monetary and personal needs of the employees. A company should evaluate their organization and ensure that the existing culture focuses on both organizational goals and employees’ satisfaction and development. Performance appraisal will enable a company to determine the best training programs the associates require to develop their talent and abilities, which will be used in promoting company profitability. The benefits and rewards should be offered on a competitive basis, ensuring the employees are always motivated and working towards organizational goals.
References
Chrysakis, I., Flouris, G., Patkos, T., Dimou, A., & Verborgh, R. (2020). REWARD: Ontology for reward schemes. In 17th Extended Semantic Web Conference: Posters and Demos (pp. 1-5).
Geico. No date. Total Rewards Program . http://careers.geico.com/working_at_geico/total_rewards_program
Hoole, C., & Hotz, G. (2016). The impact of a total reward system of work engagement. SA Journal of Industrial Psychology , 42 (1), 1-14.
Jiang, Z., Xiao, Q., Qi, H., & Xiao, L. (2009). Total reward strategy: A human resources management strategy going with the trend of the times. International Journal of Business and management , 4 (11), 177-183.
Kaut, G., & Sharma, R. R. K. (2019). Linkages Between Culture (National, Organizational and Professional) and Total Reward Expectation of Employees: A Conceptual Framework. IUP Journal of Organizational Behavior , 18 (4), 25-49.
WorldatWork. (2007). The WorldatWork Handbook of Compensation, Benefits, & Total Rewards . John Wiley & Sons.
